oppn parties Man Sues Restaurant For Rounding Off His Bill Amount

News Snippets

  • India's sovereign green bonds were oversubscribed four times as the RBI received 266 bids worth Rs 32892cr agaisnt the target of Rs 8000cr
  • Google tweaks its Android and India app store policy to allow manufacturers and users to choose certain things instead of compulsorily using Google apps after the CCI order and fine for unfairly dominating the market
  • Former US secretary of state calls former Indian external affairs minister Sushma Swaraj a "goofback" and a "hinterland political hack". MEA S Jaishankar slams him
  • Jamia screening of BBC documentary on Gujarat riots cancelled after the university was turned into a fortress and later 13 students were detained by the police
  • Supreme Court grants conditional interim bail for eight weeks to Lakhimpur Kheri accused Ashish Mishra. The bail can be further extended based on his conduct. He was asked to stay outside Delhi-NCR and UP and surrender his passport
  • After the JNU administration tried to thwart the students from screening the BBC documentary on the Gujarat riots and PM Modi, now students of Presidency and Jadavpur universities in Kolkata have decided to screen it 5 times next week
  • While a US research frim Hindenburg says its analysis found the Adani group overleveraged and claimed that its bubble will burst very soon and that sent the price of group companies crashing (Adani companies lost a combined Rs 55000cr), Adani group said the report was 'baseless' and 'malicious'
  • This time Enforcement Directorate arrests TMC spokesperson Saket Gokhale under PMLA for money laundering
  • Padma awards announced on Republic Day: Mulayam Singh Yadav, architect Balkrishna Doshi and ORS pioneer Dilip Mahalanobis get Padma Bibhushan posthumously, Padma Bhushan ius awarded to Kumar Mangalam Birla and 8 others and 91 get Padma Shri
  • Stocks fall big time on Wednesday on F&O expiry, finalncial and banks take big hit: Sensex tumbles 773 points to 60205 and Nifty 226 points to 17892 even as the market volatility meter shoots up by 8.51%
  • World Cup hockey: Germany stun England 4-3 to reach semifinals; Netherlands beat Korea 5-1 to enter last four
  • Australian Open: Sania Mirza and Rohan Bopanna reach the finals
  • Suryakumar Yadav is named ICC Cricketer of the Year 2022 and Renuka Singh gets the ICC Emerging Cricketer of the Year 2022 award
  • BCCI gets a whopping Rs 4670cr in the auctions for the 5 teams in WIPL or as it will be known now, WPL. Adani Sportline gets Ahmedabad for Rs 1289cr while Mumbai Indians get Mumbai for 913cr
  • Calcutta HC overturns the hookah bar ban in Kolkata by saying that it is not an illegal trade
India Commentary Wishes A Happy Republic Day To All Its Readers /////// India Commentary Wishes A Happy Basant Panchami And Saraswati Puja To All Its Readers
oppn parties
Man Sues Restaurant For Rounding Off His Bill Amount

By A Special Correspondent
First publised on 2021-07-05 06:32:25

A report in the newspapers said that a man, a lawyer by profession, had taken a restaurant to court as the establishment rounded off his bill to the nearest rupee. His actual bill had a figure of Rs XXX.60 which the restaurant rounded off to Rs XXX plus Re 1. This, according to him, was unfair business practice and caused him a loss of 40 paise. He lodged a complaint before the Bangalore Consumer Disputes Redressal Commission on grounds of unfair business practice.

Although there is no specific law or circular for private businesses to round off bill amounts, the RBI had, as early as 1991, instructed all banks to round off all fractions of rupees in all transactions to the nearest rupee - meaning any fraction below 50 paise was to be rounded off to the lower denomination and above 50 paise to the higher denomination. It again issued a circular in 2014 to direct the NBFCs to do the same. The government of India also issued a circular and directed all departments to receive and pay bills by rounding them off. Hence, private establishments have also started following this practice and it is nothing new. It has been there since the last two decades or more and has come to be accepted as a fair commercial practice as the rounding off almost always balances out causing neither profit nor loss to the establishment. The customers might feel they are losing out in a single transaction but overall it balances out for them too. This practice is now being followed by almost all billers, including public utilities.

While any one can object and the establishment is bound to respect his objection, the problem is that the billing software is built in a way that it will automatically round off the bills. Hence, the staff has nothing to do in this regard. Further, normally everything is nowadays priced in whole rupees and there are usually no fractions involved. But when the bill amount is subjected to tax, the fractions crop up. The rounding off is done to avoid complications. Since it has become the standard operating practice, most customers have come to accept this. Hence, the above complaint seems to be a rare instance. However, it will be interesting to see how the consumer body rules in the absence of a specific law as it will have wide ramifications across many sectors.